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Postal Rates

With implementation of the Postal Accountability and Enforcement Act in December 2006, postal ratesetting for most classes of mail, including periodicals, entered a new era. Under the new law, rates for each class of mail in the market dominant category, may not go up more than inflation each year. As a result of postal reform, there are now generally two postal proceedings at the Postal Regulatory Commission each year, a rate increase proceeding in the spring leading to an annual increase in May and an annual compliance review, beginning late in the year and carrying over into the following year.

On March 17, 2008, the independent Postal Regulatory Commission approved the U.S. Postal Service’s proposed price adjustments for magazines and other market dominant products. This is the first increase under the new postal reform law, which is legislation MPA and its members worked tirelessly to have passed and enacted.

Under reform, annual increases cannot exceed the statutory CPI, which was 2.9% for the 12 months ending December 2007. Following the Commission’s 14 day review period - which was preceded by a 20 day comment period during which MPA submitted comments in favor of the new rates - a 2.7% increase for periodicals was approved and will now officially become effective May 12, 2008.